Indian Court: Interest on a Refund of Advance Tax Must Be Paid

Whether a company is entitled to interest on a refund of excess advance tax paid under India’s §244A(1) of the Income Tax Act (1961) was a question of law before the Bombay High Court in Ceat Limited vs. Commissioner of Income Tax (Feb. 9, 2024, Income Tax Appeal No. 320 of 2003). In general, a taxpayer has no right to receive interest on refund of excess taxes paid (in the nature of advance tax, self-assessment tax, or tax paid further to a demand notice) except under the express provisions of a statute. The interpretation of section 244A of the Act ...